Live From The Field
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $320,000 | $160,000 |
| Suggested offer (low) | $320,000 | $160,000 |
| Suggested offer (high) | $320,000 | $160,000 |
| Asking | $320,000 | $160,000 |
| Market Value (after improvements) | $320,000 | |
| Improvements (lower) | $6,500 | $3,250 |
| Improvements (upper) | $8,500 | $4,250 |
| Closing Costs | $4,000 | $2,000 |
| Mortgage Costs | $4,000 | $2,000 |
| Other Fees At Closing | $0 | $0 |
| Total Cost | $335,500 | $2,000 |
| Purchase Assumptions | My Offer | Per Door |
| Offer used for analysis | $320,000 | $160,000 |
| Suggested offer (low) | $320,000 | $160,000 |
| Suggested offer (high) | $320,000 | $160,000 |
| Asking | $320,000 | $160,000 |
| Market Value (after improvements) | $320,000 | |
| Improvements (lower) | $6,500 | $3,250 |
| Improvements (upper) | $8,500 | $4,250 |
| Closing Costs | $4,000 | $2,000 |
| Mortgage Costs | $4,000 | $2,000 |
| Other Fees At Closing | $0 | $0 |
| Total Cost | $335,500 | $2,000 |
| Financial Assumptions | Monthly | Yearly | ||
| Rent (upper) | $2,700 | $2,800 | $33,600 | |
| Rent (lower) | $2,600 | $31,200 | ||
| Property Tax Rate (Approx.) | 2.3% | |||
| Property Taxes | $300 | $3,600 | ||
| Insurance | $150 | $1,800 | ||
| Repairs | $150 | $1,800 | ||
| Variable-Cost PM | Flat Fee | |||
| Property Management Fee | $200 | $2,400 | ||
| Leasing Fee | 80% | $90.0 | $1,080 | |
| HOA | $0 | $0 | ||
| Vacancy Rate | 4.0% | |||
| Total Fixed Expenses | $990 | $11,880 | ||
| Total Expenses (Fixed + Mortgage) | $2,054 | $24,652 | ||
| Financial Analysis / Deal Attractiveness | ||
| Years: | 5 | 10 |
| Cap Rate | 9.0% | 10.2% |
| Net Cash Flow | $42,926 | $96,966 |
| Equity Increase | $94,428 | $208,520 |
| Total Gain | $137,354 | $305,486 |
| Average Cash Flow/Year | $8,585 | $9,697 |
| Average Cash Flow/Month | $715 | $808 |
| Average Gain/Year | $27,471 | $30,549 |
| Average ROI | 143.8% | 319.9% |
| Annual ROI | 28.8% | 32.0% |
| Projected Property Value | $389,329 | $473,678 |
| Property Ratings Suggestions | |||||
| Item | Suggested Criteria (Min.) | This Property | FAVORABLE / INSUFFICIENT |
||
| Schools | B | B | FAVORABLE | ||
| Square Feet | 1000 | 2312 | FAVORABLE | ||
| Bedrooms | 3 | 4 | FAVORABLE | ||
| Bathrooms | 2 | 4 | FAVORABLE | ||
| Year Built | 1970 | 1985 | FAVORABLE | ||
| Rent/Price (%) | 0.75% | 0.88% | FAVORABLE | ||
| Average Cash Flow (at year 5) | $125 | $715 | FAVORABLE | ||
| Average ROI (at year 5) | 15% | 28.8% | FAVORABLE | ||